Zabetti A. Pappas - Page 19

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          cost of living for specific years according to such factors as              
          age, size of consumer unit, occupation and location in the                  
          greater New York area to determine that petitioner had a cost of            
          living-–and, hence, net income-–of $16,766 for 1991 and $17,461             
          for 1992.                                                                   
               The Commissioner’s determinations in the notice of                     
          deficiency are presumed correct, and petitioner bears the burden            
          of proving that the determinations are in error.3  See Rule                 
          142(a); Welch v. Helvering, 290 U.S. 111, 115 (1933).                       
               We note at the outset that petitioner has no credibility               
          with respect to the matters on which she testified.  Her                    
          testimony was shown on repeated occasions to be false, indicating           
          to us that she did not consider herself under any particular                
          obligation to testify truthfully in these proceedings.  For                 
          example, she denied absolutely that she, either in a personal or            
          corporate capacity, received any money for providing escort                 
          services, although many of the 17 individuals identified in                 
          respondent’s notice of deficiency testified credibly that they              
          paid her for such services.  Also, petitioner first denied any              
          detailed knowledge regarding an eviction proceeding for an                  

               3 Sec. 7491 does not apply to this case because the                    
          examination commenced prior to July 22, 1998, the effective date            
          of that section.  See Internal Revenue Service Restructuring and            
          Reform Act of 1998, Pub. L. 105-206, sec. 3001(c)(1), 112 Stat.             

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